Term Life Insurance Quotes
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1. Learn
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2. Consult
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3. Apply
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4. Servicing
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The Basics
What is term life insurance, and how does it work?
Term life insurance—also called term insurance for short—is the simplest form of life insurance coverage. It pays a tax-free lump sum to your chosen beneficiaries if you pass away during a set period, usually 10, 20, or 30 years. It’s an affordable choice, as it has guaranteed level premiums during the term, and does not have extra savings or investment features.
After the term, coverage ends unless you renew it at a higher premium or convert to a permanent plan. Term life insurance is popular for covering short- to medium-term needs like a mortgage or raising children.
How much term life insurance do you need?
To determine how much term life insurance you need, consider key factors like your income, outstanding debts, and future expenses, such as children’s education. A common guideline is to aim for coverage between 5 to 10 times your annual income to provide sufficient financial security for your dependents.
However, everyone’s situation is different, so it can be helpful to use an online calculator or consult with an insurance advisor to personalize the amount based on your specific needs, lifestyle, and long-term financial goals. This ensures that your policy will cover major expenses and help maintain your family’s standard of living if you’re no longer there to provide for them.
How much does term life insurance cost?
The cost of term life insurance varies widely but can start as low as $10 per month for a young, healthy, non-smoking individual and exceed $300 per month for older individuals or those with higher health risks. Major factors affecting the cost include age, gender, smoking status, and the death benefit amount.
On average, a healthy 30-year-old male non-smoker might pay around $30 per month for a 20-year, $500,000 policy, while a 50-year-old might see premiums closer to $120 for the same coverage. Female non-smokers would pay around 20% to 30% less than their male counterparts.
Rates increase as age and risk factors go up, so getting coverage while you’re young and healthy results in lower monthly premiums.
How long should your term be?
Choosing the right term length for your life insurance depends on your age, financial obligations, and how long you’ll need coverage. Terms typically range from 5 to 50 years, but most people opt for 10, 20, or 30-year policies.
A 10-year term may suit those nearing retirement or who only need short-term coverage. Younger individuals with mortgages, young children, or other long-term needs often choose a 20- or 30-year term to cover their peak earning years and major financial commitments.
It’s wise to match the term to the length of your financial responsibilities, ensuring your loved ones are financially secure if something happens to you during this time.
What happens when your term ends?
When your term life insurance ends, you have three options. First, you can renew it, though this often comes with a steep premium increase—sometimes over 10 times the original cost—which makes it an expensive choice and generally one to avoid.
Alternatively, you can allow the policy to lapse, meaning coverage ends with no further payments or benefits.
A third option is to convert your term policy into a permanent policy, such as whole life or universal life insurance, which provides lifelong coverage. This can be especially useful for estate planning, as the permanent policy ensures a tax-free inheritance for beneficiaries while allowing for cash value growth in some plans.
Is the death benefit tax-free?
Yes, the death benefit from a term life insurance policy is typically tax-free for beneficiaries in Canada. This is because the premiums are paid with after-tax dollars, meaning taxes have already been deducted from the funds you use to pay for the policy.
As a result, your beneficiaries receive the full death benefit without tax deductions, allowing them to cover expenses or debts without additional tax liabilities. This tax-free benefit is one of the key advantages of life insurance, providing financial support in a straightforward and effective way when it’s needed most.
Is term life insurance worth it?
Yes, term life insurance is absolutely worth it for anyone with dependents, as it’s the single most effective tool to ensure financial protection for your loved ones if you’re no longer there to support them. With term life coverage, you provide a safety net that can help replace lost income, pay off debts, cover education costs, and support your family’s daily living expenses.
It’s a reliable way to ensure that they won’t face financial hardship if the unexpected happens. Affordable and customizable, term life insurance can be tailored to match your financial responsibilities, making it an essential component of a responsible financial plan.
Dive Deeper
What are the pros and cons of term life insurance?
The main pros of term life insurance are its affordability and flexibility. It’s the most budget-friendly option compared to permanent life insurance, allowing you to secure a large death benefit at a low monthly cost—ideal for families looking for maximum protection on a tight budget. You can customize your policy by choosing the coverage amount and term length that best suits your financial obligations.
However, term life has its drawbacks: it doesn’t build cash value, so you don’t receive any return on your premiums if you outlive the policy. Plus, since it only lasts for a set period, there’s no payout at the end of the term unless a claim is made. If you want to renew, premiums will be higher with age, and renewals can be costly, making it essential to plan ahead if long-term coverage is needed.
What is the difference between term life insurance and permanent life insurance?
The main difference between term and permanent life insurance is the length of coverage: term life insurance covers you for a set number of years (like 10, 20, or 30), while permanent life insurance provides lifelong protection.
Term insurance is generally much cheaper, making it an accessible option for income replacement or to cover temporary needs like a mortgage. On the other hand, permanent life insurance is more expensive but offers added benefits, like accumulating cash value that you can borrow against or withdraw. This feature makes permanent life insurance a valuable tool for long-term financial planning, often used for retirement, estate planning, or covering final expenses and taxes after death.
Does term life insurance offer a cash value or investment component?
No, term life insurance does not offer a cash value or investment component; it is designed purely for financial protection over a specified term. Unlike permanent life insurance products, such as whole life or universal life insurance, term policies do not build cash value over time.
This focus on protection alone makes term life insurance more affordable, as premiums are solely allocated toward the death benefit rather than accumulating savings or investment value.
Should you get term life insurance or mortgage life insurance?
Term life insurance is a better option than mortgage life insurance because term policies offer more flexibility and control. With term life insurance, you own the policy and can designate any beneficiary you choose, meaning your loved ones can decide how to use the payout, whether for mortgage payments, daily expenses, or other needs. In contrast, mortgage life insurance is owned by the bank, and the death benefit automatically goes toward paying off the mortgage balance.
Additionally, term life premiums remain level throughout the term, while mortgage life insurance costs typically increase every five years with age.
Also, the death benefit on term life insurance remains the same for the entire term, while the payout on mortgage life insurance decreases as the mortgage balance decreases, meaning you pay the same premium for a shrinking benefit.
Here’s a table summarizing these and other benefits of term life insurance over mortgage life insurance.
Term life insurance | Mortgage life insurance | |
|---|---|---|
Owned by | You, so you can choose and change the beneficiary as you please | The bank, so it has full control over the policy |
Premiums | Lower | Higher |
Are premiums guaranteed? | Yes, premiums won’t change throughout the entire term | No, premiums are age banded, so they increase as you get older. |
Death benefit | Level | Decreases as you pay down your mortgage |
Portability | Since you own the policy, you can keep it even if you switch lenders | Once you switch lenders, you’ll have to qualify for coverage again |
Do you need term life insurance if you're already covered through your employer?
Even if you have life insurance through your employer, it’s often a good idea to consider additional term life insurance. Most employer-provided plans offer only a limited benefit, such as $50,000 or one year’s salary, which might fall short of your family’s needs if you’re the primary breadwinner or have significant financial obligations.
Many people determine they need several hundred thousand dollars—or even over a million—in coverage to adequately protect their loved ones, especially if they have a mortgage, education costs, or ongoing family expenses.
Personal term life insurance allows you to choose a coverage amount that truly reflects your dependents’ needs and ensures they’re financially secure, regardless of employment changes.
Are there any benefits or riders you can add to your term life insurance policy?
Yes, many term life insurance policies offer additional benefits or “riders” that enhance your coverage. Riders are optional features that you can add to customize your policy for an extra cost. One popular option is the guaranteed insurability rider, which allows you to purchase more coverage in the future without additional medical underwriting—helpful if you anticipate higher insurance needs later on.
Another useful rider is the disability waiver of premium, which pauses your premium payments if you become disabled and unable to work, so you can maintain coverage without financial strain. These riders provide added flexibility and security, ensuring your policy adapts to changing life circumstances.
What are your options for term life insurance as a couple?
As a couple, you have two main options for term life insurance: purchasing individual term policies or opting for a combined joint first-to-die policy. With individual policies, each person is covered separately, and both policies pay out when each insured person passes away.
In contrast, a joint first-to-die policy covers both of you under one policy and pays the death benefit upon the first death. You can choose this option to cover shared financial obligations, like a mortgage, since the payout can help the surviving partner manage immediate financial needs.
Do you have to name your spouse as your beneficiary?
No, you don’t have to name your spouse as your beneficiary on a term life insurance policy. While it’s common to name a spouse, you can choose other beneficiaries such as your children, grandchildren, siblings, or parents.
For minor children, who can’t directly receive the funds, it’s important to designate a trustee to manage the proceeds until they reach the age of majority. Selecting an appropriate beneficiary ensures that your intended recipients will have financial support when it’s needed most.
Can you buy term life insurance for your spouse or children?
Yes, you can buy term life insurance for your spouse or children as long as you have an insurable interest in them. While you may want to purchase life insurance for your children, most insurance companies limit term life insurance to adults age 18 and older, so you may need to consider other options, like a child term rider, to provide term insurance for minor children.
What is the best age to buy term life insurance?
The best age to buy term life insurance is whenever you have dependents who would face financial hardship without your support. This often coincides with major life events, like getting married or starting a family, as a spouse or child would need ongoing financial security if anything happened to you.
Buying early not only ensures your loved ones are protected, but it also locks in lower premiums while you’re younger and likely in better health.
Can you have multiple term life insurance policies?
Yes, you can have multiple term life insurance policies, and this strategy is common for those who want to tailor their coverage to changing financial needs. Some people use a “laddering” approach, buying policies with different term lengths—such as term-10, term-20, and term-30—to match their coverage to major financial milestones.
For example, they may use a shorter policy for a car loan or shorter-term debt, a mid-length policy for their children’s education, and a longer-term policy for a mortgage. This approach ensures coverage when it’s needed most and saves money compared to buying a single long-term policy for the full amount.
What is the difference between level term and decreasing term life insurance?
The main difference between level term and decreasing term life insurance is in the death benefit: a level term policy has a fixed death benefit throughout the policy’s duration, while a decreasing term policy’s death benefit gradually reduces each year.
Decreasing term insurance is generally more affordable and may be ideal if you’re on a tight budget with a need for coverage that declines over time, such as paying down a mortgage or other debts that diminish annually.
Is term life insurance available for business protection purposes?
Yes, term life insurance can be used for various business protection purposes. It’s commonly purchased to fund a buyout of a deceased partner’s share, which helps maintain business continuity and avoids ownership disputes. It can also cover business loans or other debts, ensuring these obligations are met even if a key person passes away.
Additionally, term life insurance can provide a financial cushion to stabilize the company if a vital shareholder dies, giving the business time to recover without facing immediate financial strain.
Health And Lifestyle Concerns
Can you get term life insurance if you have health problems?
Yes, you can get term life insurance if you have health problems, though eligibility and premiums depend on factors like your specific diagnosis, the timing and type of treatment or surgery you’ve had, current symptoms, any complications, and medications.
An underwriter will evaluate these details to determine your risk profile and whether you qualify for coverage. If you do qualify, you may need to pay higher premiums to offset the increased risk associated with your condition.
Some insurers also offer simplified or guaranteed issue term policies, which involve fewer health questions but typically come with higher premiums and lower coverage limits.
Can you get term life insurance if you have hazardous hobbies?
Yes, you can get term life insurance if you have hazardous hobbies, though you may need to pay a higher premium to cover the additional risk. The premium increase will depend on factors like the specific activity, how frequently you participate, your level of experience and training, and other relevant details.
In some cases, rather than charging a higher premium, the insurer may include an exclusion for that activity, meaning the policy won’t pay out if a death results from that particular hobby.
Can you get term life insurance if you are a smoker?
Yes, you can get term life insurance as a smoker, but you should expect to pay significantly higher premiums—typically 2 to 3 times more than what a non-smoker would pay. Insurers consider smoking a high-risk factor for life expectancy, which impacts the premium rates.
If you’re a smoker, insurance companies can reclassify you as a non-smoker if you quit smoking and remain tobacco-free for a year.
Can you get term life insurance if your are self-employed?
Yes, you can get term life insurance if you are self-employed. Since you won’t have access to employer-sponsored benefits, it’s essential to purchase individual life insurance to ensure your family is financially protected.
In addition to term life insurance, you should consider disability and critical illness insurance, as these will help safeguard your income in case of illness or injury, providing a financial cushion when you’re unable to work.
Can you get term life insurance if you are unemployed?
Yes, you can get term life insurance if you are unemployed, though the amount of coverage may be capped by insurers, with $500,000 being a common limit.
Can you get term life insurance if you are retired?
Yes, you can still get term life insurance if you are retired, as long as you can demonstrate a need for it. Common reasons include covering a mortgage or providing for adult children or grandchildren who rely on you financially.
Purchasing Term Life Insurance
What is the underwriting process for term life insurance?
The underwriting process for term life insurance starts with a detailed medical questionnaire that covers your medical history, current health, height, weight, and lifestyle factors such as driving record and drug use.
Depending on your answers, the insurer may also require a medical exam to collect blood and urine samples, check blood pressure, and assess other health indicators. If you have a pre-existing medical condition, the insurance company may request additional information from your doctor or specialist to understand the risk involved.
An underwriter then reviews all this information to determine if you qualify for coverage, and, if approved, whether higher premiums are necessary based on any increased risk factors.
Do you need to undergo a medical exam for term life insurance?
You don’t necessarily need to undergo a medical exam to get term life insurance, as some insurers offer up to $5,000,000 in coverage without requiring one. However, they may still randomly select applicants for an exam or require it if you have a larger build or pre-existing medical conditions.
If you prefer to avoid medical exams entirely, you can choose simplified issue or guaranteed issue term life insurance policies, which skip medical exams and instead use a short health questionnaire or no health questions at all. These options are ideal for those who may have health issues or simply want a faster application process.
What is no medical life insurance?
No medical life insurance is a type of coverage you can buy without undergoing a medical exam, making it a convenient option for those who want quick approval or have health issues that might complicate traditional policies.
These policies typically involve fewer health-related questions. However, because the insurer knows less about your health risks, premiums are higher than for traditionally underwritten life insurance.
Coverage amounts are often capped, such as $500,000 or less, making it best suited for those with moderate insurance needs or difficulty qualifying for standard plans.
How can you lower your term life insurance premiums?
The best way to lower your term life insurance premiums is to buy a policy while you’re young and healthy, as this is when life insurance is most affordable. If you wait, health issues may arise, which can lead to higher premiums.
Additionally, you can consider selecting a shorter term length or opting for a lower coverage amount—just make sure it’s still enough to cover your financial obligations.
Some insurers also offer discounts if you bundle multiple policies, like life and critical illness insurance, with them.
How long does it take to get a term life insurance policy?
The time it takes to get a term life insurance policy can vary widely. In the quickest cases, you might be approved in just a few days if you’ve completed the medical and lifestyle questions on the application, and the underwriter finds everything in order without requiring further details.
However, the process can extend to several weeks or even months if a medical exam is required or if the insurance company needs additional documentation, such as a report from your family doctor.
How can you get term life insurance quotes?
Want to find the best rate on your term life insurance? It’s true, the cost can vary depending on your health, age, and lifestyle. But don’t worry! Fill out the quick form below or email us at info@briansoinsurance.com. We work with multiple Canadian insurance providers to find a policy that fits your needs and budget. Let us do the shopping around, so you can focus on what matters most.
How to compare term life insurance quotes?
To compare term life insurance quotes effectively, start by ensuring that the coverage amount and term length are identical across policies, as these are the primary factors for an apples-to-apples comparison.
With these matched, it’s easier to evaluate quotes based on price, but also consider additional factors like the insurer’s financial stability, brand reputation, policy features (such as convertibility to a permanent policy), and any included benefits or riders. These elements can influence the long-term value of the policy and help you make a more informed decision beyond just the monthly premium.
Managing Your Term Life Insurance Policy
How often should you review your term life insurance coverage?
You should review your term life insurance coverage whenever a major life event occurs, as these often change your financial needs. Key times to reassess include marriage, the birth or adoption of children, job changes, buying a home, taking out significant loans, retirement, or the death of a family member.
These events can impact your financial obligations, and adjusting your coverage ensures your policy continues to meet your and your dependents’ needs effectively.
Can you change your term life insurance policy if your needs change?
Yes, you can make certain changes to your term life insurance policy if your needs change. Most policies allow you to update beneficiaries, reduce the death benefit, or cancel the policy at any time without penalties.
However, if you need to increase your coverage amount, you will typically need to provide medical evidence of good health and go through underwriting again.
Can you get a refund on premiums if you cancel your term life insurance policy?
No, you won’t receive a refund on premiums if you cancel a term life insurance policy. However, if you paid the full premium for the year upfront, you might be eligible to get a prorated refund for the unused portion of the year. Term life policies don’t have cash value, meaning cancellation doesn’t result in a premium refund.
While you can cancel your term life insurance policy at any time, it’s essential to ensure you no longer need the coverage before doing so.
If you decide to reinstate the policy later, you may need to answer medical questions or undergo a medical exam to prove you’re still insurable and in good health. This can be a challenge if your health has changed, potentially leading to higher premiums or denial of coverage.
Can you convert term life insurance into permanent life insurance?
Yes, you can convert term life insurance into permanent life insurance, usually up to a certain age, like 71, depending on the policy. One key benefit of conversion is that it doesn’t require new medical underwriting, meaning you won’t need to go through a health exam or answer medical questions.
This option can be valuable if your health has declined, as it lets you secure lifelong coverage without facing higher premiums due to health changes. A permanent policy can be beneficial if you find you need long-term protection for estate planning, final expenses, or other permanent financial needs.
Frequently Asked Questions
Why use Brian So Insurance?
We offer term life insurance policies from many insurance providers, letting us shop for the right coverage for you and your family. Besides that, we help you decide how much coverage you need and provide free term life insurance quotes. Last but not least, we guide you through the underwriting process, so there are no surprises when you apply.
How does Brian So Insurance make money?
When you get term life insurance coverage from us, the insurance company pays us a commission. That means you don’t have to pay us for our service or advice. It’s a win-win situation.
What's the next step?
After you’re done reading the resources on our site, you can schedule a free consultation here. We’ll take down some basic information during the meeting, review it, and come up with our recommendation for the best term life insurance coverage to protect your family.
Alternatively, you can fill in the form below, and we can provide a term life insurance quote within 24 hours. Term life insurance doesn’t get much quicker than that!
Once you’re ready to proceed, you can apply online.
What else do you need to know?
Only a term life insurance policy ensures financial security for your family during critical periods, such as raising children, paying off a mortgage, or managing debts. It offers a straightforward and cost-effective way to provide a safety net, ensuring your loved ones have the resources to maintain their quality of life and meet financial obligations if something happens to you.
Take the next step to protect yourself and your family today.